First Northern Rock, now B&B
Updated on 29 September 2008
Earlier this year it was Northern Rock. Now the government has moved to nationalise Bradford & Bingley. Meanwhile Spanish bank Santander will take control of B&B branches and savings.
Bradford & Bingley's branches and savings business will be sold to the Spanish bank Santander. The state takes on the ailing mortgage business but with a politically clever twist - any losses will be clawed back from British banks.
But mortgages will become harder to get, and that will further depress the housing market.
It means another bank is being nationalised, with the government promising to safeguard depositors and maintain wider financial stability.
The chancellor, Alastair Darling, said taxpayers would be shielded from any losses because any shortfall would be picked up by other banks, not the public purse.
But so far the move hasn't inspired much confidence in the City. The index of 100 leading shares has just fallen back below the 5,000 mark.
